Bringing volume to newly listed coins

One of the problems plaguing the world of cryptocurrency is that of volume. While large and well-known coins such as Bitcoin, Ethereum, and Monero usually have massive quantities of trading volume, much smaller coins often have almost none at all. Popular coins avoid this problem because of how commonly they are both traded and discussed, but the issue is prevalent in a substantial number of obscure coins and tokens. Naturally, if a coin is rarely discussed it will have less people wanting to trade it, but if the volume is too low then people will actively begin avoiding it– nobody wants to invest in a coin which has a low display of resources. 

This becomes a vicious cycle, and if a coin or token cannot solve the problem quick enough then they get forgotten. Sometimes it’s even worse than this – some exchanges will de-list coins which do not manage to pick up their volume in due time. Cryptopia is known to occasionally do this. What’s even worse is that many exchanges do not even try to remedy this problem by promoting or supporting the newer coins they list; they leave it all up to the creators of the coin. 

How hard is it to produce volume for an asset?

Despite this being a problem across the entire cryptocurrency industry, it might not be too hard to solve. Low volume generally comes from low exposure, i.e. coins which have no overall volume are usually obscure. One method of avoiding this is to run a media campaign before releasing your coin to the masses. If your coin is released while there is zero buzz or attention coming its way then it is more likely to fail. If you release it while there is interest, then it is more likely people will jump to it. This is one of the many reasons why some people choose to run ICOs or airdrops. Airdrops, in particular, are a great way of adding volume, as it will lead many people to pass their tokens over to an exchange should they want to trade it.

Bancor tries to solve this problem too, but from a different angle. Tokens which are listed on their service are automatically given a level of promotion as the site rarely lists new tokens. This means that the sheer act of getting listed allows for you to reach out to a wider audience. Of course, Bancor is not a fully fleshed out exchange, meaning that some technical tools such as order books are lost. If a company is looking for an exchange which helps with low volume, and offers advanced trading tools, then there is always the option of RightBTC. To combat the issue of low volume, RightBTC ask for members of their exchange to individually vote on which tokens they want listed by depositing a small quantity of that token to the exchange itself. This means that the token with the most votes will also have the most volume, as every voter would have contributed to it. This means that even obscure and lesser-known tokens can get listed with good volume. Of course, for this system to work, coin and token creators will still need to have a strong media campaign so that they can attract enough people to vote. Regardless, this system makes the process of building volume much easier. Efforts like this go a long way into making the world of cryptocurrency much friendlier and more robust.